EDITORIAL: Public deserves transparency about ESPN's plans

Published 12:00 am, Tuesday, May 21, 2013

Photo: AP

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In this May 2, 2013 file photo, ESPN President John Skipper, left, and Southeastern Conference Commissioner Mike Slive address the media during a news conference announcing the launching of the SEC Network in partnership with ESPN, in Atlanta. ESPN is cutting its workforce, the latest Disney division to reduce staff. While announcing cuts Tuesday, ESPN will still be expanding in other areas. (AP Photo/John Amis, File) less

In this May 2, 2013 file photo, ESPN President John Skipper, left, and Southeastern Conference Commissioner Mike Slive address the media during a news conference announcing the launching of the SEC Network in ... more

Photo: AP

EDITORIAL: Public deserves transparency about ESPN's plans

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The news Tuesday that Connecticut-based ESPN was laying off a sizable chunk of its work force - reported to be as many as 400 employees - was disheartening for a number of reasons.

For starters, it was a sign that few if any businesses are immune to cutbacks at a time of economic uncertainty, and a frightening reminder of the frailty of the media landscape. ESPN, based in Bristol, has been the envy of the TV world and the overall sports media industry for decades, and hadn't undergone substantial staff reductions since 2009.

Just as startling, though, was the reminder of the tightrope Gov. Dannel Malloy's administration began walking when it announced in 2011 that the media giant would be part of the "First Five" program.

The administration launched the initiative as a means to reward companies for expanding in Connecticut by giving them various financial incentives.

ESPN's deal includes a 10-year, $17.5 million loan from the Department of Economic and Community Development (DECD), up to $1.2 million to fund a job training grant program, and the chance to earn up to $6 million in sales use tax exemptions, in exchange for creating at least 200 jobs over a five-year period.

At the time the deal was announced, many wondered whether one of the most profitable media companies in the world was worthy of taxpayer help to tackle projects it likely would have tackled anyway.

Malloy spokesman Andrew Doba stressed Tuesday that ESPN, which employs about 4,000 people in Connecticut and about 7,000 worldwide, remained well on its way to meeting its hiring goals.

A key part of ESPN's investment is the construction of a 193,000-square-foot building, dubbed Digital Center 2, and Doba stressed that the building hasn't opened yet. The deal calls for a net growth in jobs over a five-year period and does not include provisions preventing layoffs like those revealed Tuesday, so there's no indication that ESPN has violated the deal.

Doba said the state has "claw-back measures" in place if a company fails to meet its target, but he didn't immediately respond to a New Haven Register reporter's request to spell out exactly what the financial penalties would be.

The public needs to know how exactly employers getting taxpayer help will be held accountable, and the administration, which has broad power to dole out incentives, needs to be held accountable for how the First Five program is administered.

We're not accusing ESPN of gross misconduct. Employers - even those whose endeavors are subsidized by taxpayers - should be able to manage their workforces without the government dictating every personnel move.

But if taxpayers are going to continue subsidizing ESPN's growth, they deserve to know how the company is going to grow and what the state is doing to hold it accountable.